SOLUTION FOR BYTEQUEST

CONTRIVANCE
SHAHEED BHAGAT SINGH COLLEGE (M)
By

Catalysts
Paarth, Shardul, Sidhant, Vedant
Ramjas College
Executive Summary
Company & Industry Overview Sustainable Growth Strategy
To ensure that ByteQuest to obtain a healthy share, by following the market trends and
ByteQuest, founded in 2007 by Rajeev Kapoor, initially pioneered offline exam coaching
balancing expansion with risk mitigation, the following growth strategy is devised
before pivoting to online classes, driven by the vision of making education affordable
considering the current market conditions:
through technology
Learnwise, an offline coaching center acquired by ByteQuest to enter that market
AI/ PERSONALIZED LEARNING: Derive actionable insights to inform personalized content
whereas Coding Sphere, early age coding education platform was acquired by them as a
delivery.
part of the diversification strategy
UPSKILL RESKILL: Alliances with industry bodies to offer accredited certification courses
Global Edtech industry is forecasted to grow from $22.4 B in 2023 to $661.2 B in 2032 with
STRATEGIC PARTNERSHIP: Strategic alliances are pivotal for accelerated growth.
CAGR of 12.48%
VR/AR: Simulate real-world scenarios to foster experiential learning
The market is currently fragmented with a presence of lot of competitors which vary
Gamification: Align learning objectives with game progression.
across the quality of content they provide and their market reach
Key trends which shape the current industry are immersive technologies, AI-assisted
Risk mitigation analysis for the 3 major risks while also identifying the risk which goes over
learning, upskilling-reskilling and hybrid education
the contemplated line of risk.

Financial Trouble Resolution LearnWise Institute Strategy

Evaluated the decision to take LearnWise institute public through an Initial Public
A comprehensive approach to overcome the financial challenges of ByteQuest, by Offering (IPO) by taking decision while also considering the alignment with long-term
optimising operations, exploring alternative financing options and potential divesting vision. The following strategy was devised:
The devised dilution is of 10% at Rs 638.21 Cr valuation for the IPO at the base
Debt Renegotiation: Initiate immediate discussions with creditors to restructure the $1.2 Retaining the majority stake would allow the firm to capitalize on the increasing revenue
billion debt, aiming for more favorable terms. and PAT which would eventually allow ByteQuest to overcome the financial trouble of
Operational Efficiency: Within the next three months, implement cost optimization and burning lot of cash & cash equivalents
revenue enhancement strategies to improve financial health. IPO Readiness: Prepare LearnWise for the public market by ensuring robust financials, clear
Asset Realignment: Plan and execute the divestiture of non-core assets and the IPO for growth strategies, and compliance with regulatory requirements.
LearnWise within the next six to nine months. Market Analysis: Conduct a thorough market analysis to determine the optimal timing for
Stakeholder Engagement: Maintain continuous and transparent communication with all the IPO, considering current market conditions and investor sentiment.
stakeholders, ensuring alignment with regulatory compliance throughout the process. Investor Outreach: Develop a compelling narrative around ByteQuest’s vision and
LearnWise’s potential to attract institutional and retail investors.

Executive Summary Overview Expansion Plan Strategy Risk Mitigation 1

Diving into the Edtech industry
COMPANY OVERVIEW INDUSTRY OVERVIEW
ByteQuests’ Quest to be the market leader ... On studying the industry and performing a competitors’ analysis, we find ...
High Quality
Making education affordable through technology OPERATIONAL In billion (Dollars)
700
EXCELLENCE

COMPETITORS’ MATRIX
Empowering learners to create personalized journeys
that fit their goals and styles for students of all ages. Aims to be “master of 600 661.2
E-books and online resources available in multiple three disciplines” in India
however it lacks relatively 500
languages for diverse learners.

8%
Introducing young learners to coding in a fun and in Product Leadership

.4
400

12
engaging way.
Combining online resources with offline coaching 300 Low Market High Market
centers throughout the country for flexibility and in- Share Share
person interaction. 200
PRODUCT 222.4
LEADERSHIP 100
Offline CUSTOMER
Online 0
Centers INTIMACY 2023 2032 Low Quality
Coaching
VALUE DISCIPLINE FRAMEWORK
Key Trends, Market Characteristics and Concentration ...
ByteQuest ventures out to diversify its offerings ... Market Concentration Market Characteristics

Degree of Innovation

Fragmented Concentrated Level of M&A Activities

Education Impact of Regulations
Technology Market
Services Substitutes
BYTE QUEST LEARNWISE CODE SPHERE End-user Concentration
Founded: 2007 by Rajiv Kapoor. Specialization: Early-age coding
Business: Established Indian offline KEY TRENDS IMPACT
Initial Business: Offline exam coaching. coaching center. education.
Pivot: Shifted to online classes, leveraging Acquisition: 70% acquired by Acquisition: Acquired by ByteQuest as Low High
technology for affordable education. ByteQuest for $800 million. part of its diversification strategy.
Growth: Expanded into K-12 digital learning Strategy: ByteQuest aimed to enter Financial Strain: Struggled to generate Immersive Technologies
in 2015 with Centrum Capital’s support. offline coaching markets and leverage positive cash flows, becoming a financial
Financial Challenges: Faced a $1.2 billion LearnWise’s financial success. burden due to aggressive marketing
term loan, employee layoffs, and setbacks in Current Situation: ByteQuest may spending. AI-Assisted Learning
acquisitions by 2024. reduce its stake to 60% and is exploring current situation: Code Sphere is
Strategic Moves: Acquired various edtech an IPO for LearnWise. focusing on enhancing developer
companies, including a 70% stake in productivity by offering a cloud-based Upskilling & Reskilling
LearnWise. platform for seamless coding and
Current Strategy: Plans to sell a 10% stake deployment, backed by a recent $5M
in LearnWise and consider an IPO for funding round1 Hybrid Education
LearnWise.

Executive Summary Overview Expansion Plan Strategy Risk Mitigation 2

Sustainable Growth Strategy
PARAMETERS OF ASSESSMENT

POTENTIAL OVERALL
SOLUTIONS DURATION OF ATTRACTIVENESS
COMPLEXITY OF IMPLEMENTATION ANALYSIS
Description DEGREE OF IMPACT
IMPLEMENTATION (Rankings 1-6: Longest to METHOD
Shortest)

Derive actionable insights AI Synopsis, Market

AI/ PERSONALIZED
to inform personalized Sizing, Comparative
LEARNING content delivery.
High High 6-12 months
Evaluation

Breakeven Analysis,
Alliances with industry
3-6 months Profitability
UPSKILL RESKILL bodies to offer accredited High Medium Assessment
certification courses

Adaptability
Strategic alliances are
STRATEGIC 1-3 months (depending Assessment,
pivotal for accelerated High Low on complexity) Comparative Evaluation
PARTNERSHIP growth.

Simulate real-world Comparative

VR/AR scenarios to foster Medium High 12+ months Evaluation, Profitability
experiential learning Analysis

Comparative
Align learning objectives
GAMIFICATION with game progression.
Medium Medium 3-6 months Evaluation,
Engagement Metrics

Executive Summary Overview Expansion Plan Strategy Risk Mitigation 3

Strategy to put ByteQuest on growth trajectory
A Financial Trouble Resolution for ByteQuest ...
1. AI and Personalized Learning and VR/AR Integration:
Leverage AI algorithms to analyze student behavior, learning patterns, and performance, and
recommend relevant resources, quizzes, and exercises. Strategic Financial Reengineering Business Model Refinement
Develop personalized learning paths based on individual strengths, weaknesses, and learning
pace.
Debt Restructuring: Engage with creditors to
Develop virtual labs for science, engineering, and medical subjects. Cost Optimization: Conduct a thorough review of all
renegotiate the $1.2 billion term loan, aiming for an
Use AR to overlay interactive elements on textbooks or study materials. operational expenses, particularly the marketing
extension of maturities and a reduction in interest
Implement chatbots or virtual assistants for instant doubt resolution. spend that has not yielded positive cash flows, and
rates. Consider debt-to-equity swaps to alleviate
NLP can also provide personalized feedback on assignments. recalibrate the budget to focus on high-ROI activities.
immediate cash flow pressures.

Equity Capitalization: Explore the possibility of a Revenue Stream Diversification: While ByteQuest
2. Upskill and Reskill: rights issue to existing shareholders to raise additional has a strong presence in K-12 and coding education, it
equity capital, potentially backed by Centrum Capital should explore additional verticals within EdTech that
Collaborate with industry bodies to offer certification courses. align with its core competencies and market demand.
or other investors who have previously shown
Focus on in-demand skills like data science, digital marketing, and cloud computing.
confidence in ByteQuest.
Create short, focused modules for busy professionals.
Offer flexible learning schedules.
Partner with companies for employee upskilling programs.
Customize content based on industry needs

Debt Operational Asset Stakeholder

Renegotiation Efficiency Realignment Engagement
3. Strategic Partnerships
Partner with universities for credit-based courses.
Gain access to their student base and faculty expertise.
Collaborate with government bodies for skill development initiatives.
Access funding and regulatory support.
Join hands with industry associations for credibility. Asset and Investment Rationalization Stakeholder Engagement & Transparency
Co-create content and events in collaboration with industries
Divestiture of Non-Core Assets: Evaluate the
Investor Communication: Maintain an open line of
performance of recent acquisitions like Code Sphere
communication with investors, detailing the steps
and consider divesting stakes that are not strategically
being taken to navigate the financial challenges and
aligned or financially beneficial.
4. Gamification the strategic vision for ByteQuest’s future.
Introduce leaderboards for quizzes and assignments. IPO for LearnWise: Proceed with the planned IPO for
Employee Assurance: Address employee concerns by
Award badges for achievements. LearnWise, but ensure that the valuation and timing
being transparent about the company’s financial
Design learning paths as quests. capitalize on market conditions and investor
health and the measures being implemented to
Students unlock new content as they progress. sentiment. The 10% stake sale should be priced to
ensure stability and growth
Create educational games with engaging narratives. reflect the intrinsic value and future growth potential
Tie learning objectives to game progression. of LearnWise.

Executive Summary Overview Expansion Plan Strategy Risk Mitigation 4

Risk Mitigation
Formulating cashflows for LearnWise and figuring out the value of the IPO ...
High

FORECASTED CASHFLOWS FOR LEARNWISE

200 Present Value of the Future Cash FLows

Only 1 contemplated risks cross Rs 638.21 Cr

Probability

the critical risk line

150
Devised IPO Value
159.27

149.58
140.48
131.93
10%

123.89
100

116.35
109.27
Devised Dilution

102.62
90.51

96.37
Low

50
$ 1142.85 M
Low Impact High
0 Valuation at
RISKS MITIGATION
purchase

31
29

30
28
25

32

33
26

27
24

20

20
20
20

20
20
20

20

20
20
Implement a robust financial management system. This could involve hiring
Insolvency- The biggest risk is a financial advisor or CFO who has experience in managing financial crises.
insolvency, which could lead to They can help develop a financial plan, negotiate with creditors, and identify
bankruptcy if not managed properly. How implementing a financial strategy would impact ByteQuest ...
assets that can be sold to improve liquidity. Regular financial audits can
ensure that the plan is being followed and adjustments can be made as
15000 Net Income Projections after implementing the
necessary.

NET INCOME PROJECTIONS

cost effective measures (in Rs Cr)
14144

7779
Conduct thorough market research and financial auditing. Hiring a
Failed IPO- The biggest risk is a failed
reputable investment bank can help guide the IPO process. They can help 10000 $1.2 B
IPO, which could lead to a significant
price the shares, market the IPO, and navigate regulatory requirements.

3007
financial loss and damage to the
To retain strategic control, consider structuring the shares such that
company’s reputation. 5000
voting rights are retained even if a majority of the economic interest is
sold. Total amount of loan out
of which
Operational Efficiency Risk- In the First we identify the areas of operations that need optimization. Once
0

4873
6094
process of optimizing operations, identified, develop a detailed plan outlining the changes to be made, the

517
6872
7313
there could be a risk of disrupting the expected impact, and the timeline for implementation. Convey this plan to

3071
-5000 7500
workflow, leading to decreased all relevant team members and provide them with the necessary training. $800
productivity or employee Implement the changes gradually to minimize disruption. Use performance
M for 70%
dissatisfaction. metrics to monitor the impact of these changes on productivity and -10000 stake in
employee satisfaction. 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
LearWise

Executive Summary Overview Expansion Plan Strategy Risk Mitigation 5

APPENDIX
APPENDIX
 THANK YOU
By

Catalysts
Paarth, Shardul, Sidhant, Vedant
Ramjas College